Another year, another watch list. 24/7 Wall Street has a prediction what well-known brands will go out of existence next year, and there are three companies listed that could be problematic to landlords.
The report says that Sears, American Apparel and A&W Restaurants will all be gone in 2012. Not good it it's true.
Sears is obviously the biggest problem. The article speculates that all of the Sears stores could be converted into Kmarts, but aren't there enough discount stores out there that could easily put that chain out of commission?
American Apparel isn't an ideal situation either. There are nearly 260 stores in the chain, most of them in the US. The company has had financial problems for a while now, and supposedly, CEO Dov Charney didn't bother to show up for its latest shareholder meeting.
A&W isn't a substantial rent payer in high-profile locations, but it still has 360 units worldwide. There are surely some small landlords that can be hit by this.
How do you think these chains will end up? Do you see more big brands shutting down on the horizon?
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
